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Certificate of Deposit Calculator: See How Fast Your Money Grows

Calculate how much your CD could earn with this easy-to-use calculator.

Use our CD calculator to see how much you could earn with a high-interest deposit account. Start by inputting your initial deposit amount, your CD’s term in months or years, and then input your CD’s projected interest rate.


$




%

0.00

Your total balance

Interest earned by Month 3:
Your earnings
0.00
National Average
0.00
Total interest earned = ${formatCurrency(yourVal)}

If you deposit X and leave it for X months/years , here’s what you could earn with each account.

Western Alliance Bank 12 months CDs through Raisin
APY: 3.8%
Interest: 0.00
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Alliant Credit Union CDs
APY: 4%
Interest: 0.00
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Valley Direct Online CD
APY: 4%
Interest: 0.00
Go to site

*Rates from the Finder comparison table.

How do I use the CD calculator?

Fill in the following fields:

  • Initial deposit. CDs require an initial deposit to open and to earn interest. Most CDs have an opening deposit requirement, typically between $100 and $2,500. Some CDs don’t have minimum deposit requirements, but you will need to deposit something to earn interest.
  • Term length. This is the number of months or years your funds will be locked away. On average, CDs tend to offer stronger rates the longer the term.
  • APY. Stands for Annual Percentage Yield, expressed as a percentage. This figure is how much you can expect your CD’s deposit to grow annually.

Compare CD rates

Narrow down top CDs by opening deposits, APYs and popular terms. For an even closer comparison, tick the Compare box on up to four options to see features side by side.

1 - 6 of 15
Product Finder Score 6-month APY 1-year APY 5-year APY Minimum deposit to open Bonus offer
Western Alliance Bank 12 months CDs through Raisin
Raisin logo
Finder score
N/A
3.80%
N/A
$1
Up to $500 bonus for new customers with qualifying deposits using promo code BOOST.
Raisin logo
Finder score
N/A
N/A
N/A
$1
Up to $500 bonus for new customers with qualifying deposits using promo code BOOST.
Alliant Credit Union CDs
Alliant Credit Union logo
Finder score
4.10%
4.00%
3.65%
$1,000
Valley Direct Online CD
Valley Direct logo
Finder score
N/A
4.00%
N/A
$500
SkyOne FCU 48-month callable CD through Raisin
Raisin logo
Finder score
N/A
N/A
N/A
$1
Bask Bank CDs
Bask Bank logo
Finder score
4.20%
4.30%
N/A
$1,000
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What is the Finder Score?

The Finder Score analyzes hundreds of CDs from more than 100 institutions. It takes into account the product's interest rate for available terms and opening deposit requirements - this gives you a simple score out of 10.

Different banks and credit unions offer CDs for various lengths of time, ranging from as short as seven days to as long as 20 years. For our ratings, we consider the term lengths that the FDIC uses in its monthly updates on national rates.

If a bank or credit union doesn’t offer a CD for a specific term used by the FDIC, we don’t penalize it: Instead, we simply don’t rate it. Each of the standard term lengths has its own APY rating based on the FDIC’s average rates.

Read the full Finder Score breakdown

How is interest calculated on a CD?

Most standard CDs have a fixed rate that compounds either on a daily, monthly or annual basis. The best CDs compound interest daily. With daily compound interest, your daily interest earnings are added to your deposit which lets your interest earns interest.

If you’d rather calculate your CD’s interest by hand, follow the steps below to find the information for this equation:

A = P(1+r/n)nt

  • P is the principal balance, so enter your deposit amount.
  • r is your CD’s interest rate written as a decimal, so take your interest rate and move the decimal to the left two times. For example, if your interest rate is 2%, r is 0.02.
  • n is the number of times your CD will compound each year. Enter 365 if your CD compounds daily, 12 if it compounds monthly, 4 if it compounds quarterly or 1 if it compounds yearly.
  • t is the length of your CD term in years. If your CD term is less than a year, divide 365 by the length of your term in days to get your CD term in years. For example, if your CD has a 90-day term, t is 0.25 years (90/365).
  • A is how much your CD will be worth at maturity, including your deposit. This is the number we’ll be solving for.

Let’s say you make a $5,000 deposit in a one-year CD, earning a 2% interest rate compounded daily. Here’s how you would calculate it using the order of operations:

  • A = $5,000 (1+0.02/365) ^ (365*1)
  • A = $5,000 (1+0.00005479452) ^ (365*1)
  • A = $5,000 (1.00005479452) ^ (365*1)
  • A = $5,000 (1.02020078103)
  • A = $5101.00

Your CD would be worth $5,101 at maturity, which means you earned $101 in interest.

How much interest will I earn on a CD?

Here’s how much interest you’ll earn if you put $500 in a CD for up to five years — or 60 days — taking into consideration the national average rates(1) and applying a monthly compounding rate.

Deposited amountTermNational APYTotal earned interest
$5006 months 1.60%$3.49
$50012 months 1.77%$9.02
$50036 months 1.35%$21.12
$50060 months 1.34%$35.70

While those rates are solid, there are higher-yielding options out there. Here’s the earning potential when you apply it to some of the best CD rates in the current market.

Deposited amountTermAPYEarnings w/ monthly compounding interest
$5006 months5.76%$14.57
$50012 months5.60%$28.73
$50036 months5.00%$80.74
$50060 months4.59%$128.71

Can you lose money with a CD?

No, probably not. CDs don’t have monthly fees and are a rather safe way to store money and earn interest, as long as it’s FDIC- or NCUA-insured.

There are only two potential ways you could lose money on a CD:

  1. If you withdraw funds early, you’ll likely pay an early withdrawal penalty in the form of earned interest.
  2. If interest rates increase, you’ll lose out on a higher rate. This is because CD rates are fixed, unlike savings accounts that offer variable rates that change with the market.

3 things to know before opening a CD

CDs can be a safe way to grow your savings and avoid the temptation of spending. But before you lock your money away in a CD, there are a few things to keep in mind.

  1. Early withdrawal penalties. CDs offer banks stability and are valuable to banks, and if you withdraw your funds early, you’ll pay early withdrawal fees. This can mean forking up around 180 days’ worth of earned interest.
  2. Don’t lock up everything. CDs lock your funds away, and if you have an emergency and need those funds sooner than planned, you may lose out on a ton of earned interest due to penalties. Make sure you keep some money in an accessible savings account for emergencies.
  3. CDs aren’t for everyone. If you frequently access your savings for expenses or prefer easier access to your money, a CD isn’t the best choice — unless you want to keep your money locked away from temptation. Instead, consider a high-yield savings account, as these earn high rates but offer more access to your funds
  4. .

Bethany Hickey's headshot
Our expert says: Consider CD laddering to maximize earnings

"CD laddering is a strategy that involves buying multiple CDs with varying maturity dates and interest rates. For example, you could buy a one-year CD with $1,000, then a two-year term with $1,000. Once the one-year CD matures, you can invest that money into another one-year CD, and then you’ll have two CDs that mature at the same time. When they mature at the same time, you can then take all the money you’ve earned from both CDs and invest it into a longer CD with a potentially higher interest rate. In short, it’s a way to save up more money for longer CDs with better rates."

Banking editor

Frequently asked questions

What happens if you cancel a CD early?

If you need to withdraw a CD’s funds before the term is up, you can do so, but you’ll likely lose some earned interest. Banks often charge early withdrawal penalties if you do a partial or full withdrawal before maturity, often between 90 to 365 days of earned interest, depending on the CD’s term and the bank’s policies. Additionally, most banks close your CD if you withdraw funds early. For these reasons, we recommend only putting funds in a CD that you’re confident you won’t need to access for the life of the CD.

There are also no-penalty CD options, which don’t charge penalties for cancelling a CD early. The tradeoff is they often have lower APYs than standard CDs.

Is there a 6% CD?

CDs don’t often have APYs that high. Even the best CDs in the market usually top out at 5% APY, possibly reaching 5.50%. However, rates that high typically require large deposit amounts, often over $100,000.

Some international banks offer accounts with rates as high as 10% to 12%, and you can also find some high-yield savings accounts with rates around and above 5% APY.

Holly Jennings's headshot
To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.
Bethany Hickey's headshot
Written by

Banking editor

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

Bethany's expertise
Bethany has written 449 Finder guides across topics including:
  • Personal finance
  • Banking
  • Auto loans
  • Insurance
  • Cryptocurrency and NFTs

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